NEWPORT BEACH, CA—Prices on REIT-owned properties kept on increasing in May, Green Street Advisors said Thursday, with the Green Street Commercial Property Price Index appreciating by 3% for the month. Whether that upward trend continues is an open question, however, the Newport Beach. CA-based research firm said earlier this week.

“Property prices continue to hit new highs as bidders push cap rates lower and lower,” says Peter Rothemund, an analyst at Green Street. “With cap rates at current levels and interest rates at year-to-date highs, commercial real estate no longer looks cheaply priced when compared to the corporate bond market. Though valuations may now only be considered fair, the wide stream of capital searching for a home in commercial property means that further increases in pricing should not come as a surprise.”

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